Prime Minister Scott Morrison was in Queensland on Monday to announce $112 million in federal funding for the 6.4 kilometre extension of the Gold Coast light rail from Broadbeach to Burleigh Heads, known as stage 3A.

"Our funding is locked in and ready to go from day one," Mr Morrison said.

"Now it's time for the Queensland government to lock in their contribution."

Stage 3A will include eight new light rail stations, upgraded pedestrian and cycling facilities and an upgraded bus interchange facility at Burleigh Heads.

Mr Bailey said stage 3A was crucial for the Gold Coast, and Mr Morrison's announcement was a "good start".

"We're serious about it - that's why we've already put $5 million towards the business case," he said.

"But we need to see the detail. When is that funding available?"

Mr Bailey said the federal Labor government's commitment for stage one was 38 per cent of the cost.

"That slipped to 23 per cent for stage two under Malcolm Turnbull and now, with the $112 million pledged by Scott Morrison to a total stage three project cost currently estimated at $670 million, the federal contribution is smaller again at 16 per cent," he said.

Mr Bailey said the project would create jobs and save public transport travel times, with the business case expected to be completed soon.

The Queensland government is yet to announce its funding commitment for the Gold Coast light rail stage 3A.

There have been more than 5.2 million trips made since the opening of Gold Coast stage two in December 2017.